NEW YORK–(BUSINESS WIRE)–Small Bone Innovations, Inc. (SBi), a leading, privately held orthopedics company focused exclusively on technologies and treatments for the small bones & joints, has closed on a $30mm credit facility to fund accelerated business expansion and refinance existing indebtedness. The senior, secured credit facility was provided by Drawbridge Special Opportunities Fund, a fund managed by an affiliate of Fortress Investment Group, a global investment management firm headquartered in New York City.
The credit facility has allowed SBi to fully repay approximately $13 million of its existing debt and will enable the company to build upon its core business by funding the introduction in 2010 of several new products and improved versions of existing products for both the upper and lower limb anatomies. The company said it also plans to build-out instrument sets to further support its product portfolio. The funding will also support SBi’s focus on evidence-based medicine, by developing and initiating several studies to better support clinical understanding of its product portfolio.
“Since the FDA-approved ‘Indications for Use’ demonstrating S.T.A.R.® as superior in efficacy and comparable in safety to ankle fusion, and our U.S. introduction of the S.T.A.R.® ankle earlier this year, demand for uncemented total ankle replacement systems in both domestic and overseas markets has exceeded our sales plan,” said Anthony G. Viscogliosi, Chairman & CEO of SBi. “Consequently, SBi intends to accelerate manufacture of both implants and instrument sets by bringing forward capital investment in the S.T.A.R.® system and expanding its surgeon education and training programs.
“Furthermore, these developments are expected to have a favorable corollary effect on the funding of several other product introductions and enhancements planned for 2010. Obviously, these events are highly encouraging for our business during this period of an extremely weak global economy and uncertainty in all aspects of health care in the U.S.,” Mr. Viscogliosi added.
Helmut D. Link and the investor group of Link America, Inc. made an equity investment in SBi in conjunction with the closing of this credit facility. Mr. Link said: “Under the leadership of Mr. Viscogliosi and all of the team at SBi, I am confident that the S.T.A.R.® ankle can realize its full potential and change the standard of care from fusion to total joint replacement, as we had envisioned when we developed this product for FDA approval and sale in the U.S.”